B.C. Interior sawmills scale back lumber output as consumers delay home renovations

By Brent Jang
The Globe and Mail
September 14, 2021
Category: Business & Politics
Region: Canada, Canada West

Sawmills in the B.C. Interior are scaling back production as consumers delay do-it-yourself renovations while home builders slow the pace of new construction. West Fraser, Conifex, Interfor and Canfor have temporarily reduced their outputs by between 5 per cent and 20 per cent. The mills, which were already experiencing disruptions after wildfires in the summer, are struggling as lumber prices drop below break-even levels. …“Lumber prices will continue to be volatile,” consultant Russ Taylor said. “It’s going to be choppy since it’s a commodity business.” Some experts speculated in early 2021 that there could be a round of industry consolidation. …Mr. Taylor said there is a stronger likelihood of Canadian-based lumber producers constructing or expanding U.S. facilities. …Lumber prices are forecast to remain below break-even levels at B.C. Interior mills for some of this fall. Some stability could be in the offing in 2022. [to access the full story a Globe and Mail subscription may be required]

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